CURRENT DIRECTION FIRE SOLUTIONS LIMITED

Executive Summary

Current Direction Fire Solutions Limited is a start-up with a weak financial position characterized by negative working capital and equity deficit after its first year. The company’s liquidity is limited and it relies heavily on related party funding, which undermines its creditworthiness. Without evidence of improving profitability or capital support, the company should be declined credit facilities at this stage.

CURRENT DIRECTION FIRE SOLUTIONS LIMITED - Analysis Report

Company Number: 15222856

Analysis Date: 2025-07-29 16:28 UTC

1. Credit Opinion: DECLINE
   Current Direction Fire Solutions Limited is a newly incorporated small private limited company with financials covering just over one year. The balance sheet reveals a negative net current asset position of £-6,406 and shareholders’ funds of £-6,409, indicating an immediate working capital deficit and net liabilities. Without an operating profit or positive equity base, the company currently lacks the financial strength to service debt obligations or absorb financial shocks. Related party debt exposure (£12,849 owed to a related company) further complicates liquidity and independence. The absence of an income statement and minimal financial history precludes confidence in sustainable cash flow generation. Therefore, in its present state, the company is not creditworthy for additional lending or commercial credit facilities.

2. Financial Strength:
   The balance sheet shows total current assets of £7,301 (comprised of £4,286 cash and £3,015 debtors) against current liabilities of £13,707. This results in a net current liability position of £-6,406, indicating insufficient working capital. Share capital is minimal at £100, and accumulated losses are £-6,409, reflecting a net deficit. The company has no fixed assets or long-term investments. This financial structure suggests a weak capital base and over-reliance on related party funding, which may not be sustainable. The negative equity position signals potential solvency concerns if losses continue.

3. Cash Flow Assessment:
   Cash holdings of £4,286 provide limited liquidity cushion. Debtors amounting to £3,015 may not be readily convertible to cash, especially given the company’s short operating history. Current liabilities of £13,707 exceed current assets, implying the company may struggle to meet short-term obligations without further capital injections or operational cash inflows. The related party creditor balance (£12,849) may indicate temporary financing but also raises concerns about the company’s independent cash flow generating ability. Overall, cash flow appears constrained and insufficient to cover working capital needs.

4. Monitoring Points:

• Track quarterly or interim management accounts to assess revenue growth and profitability trends.
• Monitor cash flow statements closely to verify improvement in liquidity and creditor coverage.
• Watch the evolution of related party balances to ensure financing terms do not impair financial stability.
• Review any new capital injections or shareholder funding to strengthen equity position.
• Assess the directors’ ability to scale operations and generate positive margins in a highly specialized construction sector (SIC 43999).
• Monitor compliance with filing deadlines and any emerging creditor pressures.